UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2009

                                       Or

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

For the transition period from ________________ to _________________

Commission File No. 0-8693

                              TRANSNET CORPORATION
                              --------------------
             (Exact name of registrant as specified in its charter)

   DELAWARE                                              22-1892295
-----------------------------------         ------------------------------------
(State or other jurisdiction of             (IRS Employer Identification Number)
incorporation or organization)

45 Columbia Road, Somerville, New Jersey                08876-3576
----------------------------------------             ----------------
(Address of principal executive offices)                (Zip Code)

Registrant's Telephone Number, Including Area Code:    908-253-0500
                                                       ------------

--------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last Report

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
                                                                  Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company (as
defined in Rule 12b-2 of the Act)
      Large Accelerated Filer [ ]            Accelerated Filer [ ]
      Non-accelerated Filer [ ]              Smaller Reporting Company [X]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Act)
[ ] Yes [X] No

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of February 12, 2010: 4,823,304.

<PAGE>


                              TRANSNET CORPORATION
                                    FORM 10-Q

                                TABLE OF CONTENTS

                                                                        Page No.
                                                                        --------

PART I.  FINANCIAL INFORMATION

         Consolidated Balance Sheets
                  December 31, 2009 (unaudited) and June 30, 2009          1


         Consolidated Statements of Operations (unaudited)
                  Three Months Ended December 31, 2009 and 2008            2
                  Six Months Ended December 31, 2009 and 2008              3


         Consolidated Statements of Cash Flows (unaudited)
                  Six Months Ended December 31, 2009 and 2008              4


         Notes to Consolidated Financial Statements                        5


     Item 2.  Management's Discussion and Analysis of Financial
              Condition and Results of Operations                         12


     Item 4.  Controls and Procedures                                     17


PART II.  OTHER INFORMATION

     Item 6.  Exhibits and Reports on Form 8-K                            18

     Signatures                                                           19
     Certifications                                                       19


                                       i.

<PAGE>

                       TRANSNET CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                           December 31,          June 30,
                                                               2009                2009
                                                           ------------        ------------
                                                            (unaudited)
<S>                                                        <C>                 <C>
ASSETS:
CURRENT ASSETS
Cash and Cash Equivalents                                  $    235,103        $  1,654,366
Restricted Cash                                                 869,879             863,621
Accounts Receivable - Net                                     3,823,047           4,392,995
Inventories - Net                                               139,016             261,456
Other Current Assets                                             44,848              11,152
                                                           ------------        ------------

TOTAL CURRENT ASSETS                                       $  5,111,893        $  7,183,590

PROPERTY AND EQUIPMENT - NET                                     97,432             120,690

OTHER ASSETS                                                    217,734             216,755
                                                           ------------        ------------

TOTAL ASSETS                                               $  5,427,059        $  7,521,035
                                                           ============        ============

LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Accounts Payable                                           $  1,556,945        $  3,481,381
Accrued Expenses                                                373,764             403,181
Unearned Revenue                                                150,851             365,442
Line of Credit                                                  799,362             828,094
                                                           ------------        ------------


TOTAL CURRENT LIABILITIES                                  $  2,880,922        $  5,078,098
                                                           ------------        ------------

STOCKHOLDERS' EQUITY:
Capital Stock - Common, $.01 Par Value,
Authorized 15,000,000 Shares; Issued 7,408,524 at
December 31, 2009 and June 30, 2009 [of which
2,585,220 are in Treasury at December 31, 2009 and
June 30, 2009]                                                   74,085              74,085

Additional Paid-in Capital                                   10,574,670          10,574,670

Accumulated Deficit                                            (949,783)         (1,052,983)
                                                           ------------        ------------

Total                                                         9,698,972           9,595,772
Less: Treasury Stock - At Cost                               (7,152,835)         (7,152,835)
                                                           ------------        ------------

TOTAL STOCKHOLDERS' EQUITY                                    2,546,137           2,442,937
                                                           ------------        ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                 $  5,427,059        $  7,521,035
                                                           ============        ============
</TABLE>

See Notes to Consolidated Financial Statements.

                                                                               1

<PAGE>

                       TRANSNET CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                 THREE MONTHS ENDED DECEMBER 31,
                                                                 -------------------------------
                                                                     2009             2008
                                                                 -------------   ---------------
<S>                                                              <C>             <C>
REVENUE
Equipment                                                        $   3,097,615   $     3,432,586
Services                                                             2,677,471         1,711,386
                                                                 -------------   ---------------

Total Revenue:                                                       5,775,086         5,143,972
                                                                 -------------   ---------------

COST OF REVENUE
Equipment                                                            2,450,697         3,321,014
Services                                                             1,961,717         1,595,834

Total Cost of Revenue                                                4,412,414         4,916,848
                                                                 -------------   ---------------

Gross Profit                                                         1,362,672           227,124

Selling, General and Administrative Expenses                         1,345,425         1,451,398
                                                                 -------------   ---------------

Operating Income (Loss)                                                 17,247        (1,224,274)
                                                                 -------------   ---------------

Interest Income                                                          3,132             6,678
Interest Expense                                                       (19,243)          (13,178)
                                                                 -------------   ---------------

Net Income (Loss)                                                $       1,136   $    (1,230,774)
                                                                 =============   ===============

Net Income (Loss) Per Common Share - Basic and Diluted           $        0.00   $         (0.26)
                                                                 =============   ===============

Weighted Average Common Shares Outstanding - Basic And Diluted       4,823,304         4,823,304
                                                                 =============   ===============
</TABLE>

See Notes to Consolidated Financial Statements.

                                                                               2

<PAGE>

                       TRANSNET CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                  SIX MONTHS ENDED DECEMBER 31,
                                                                 ------------------------------
                                                                      2009            2008
                                                                 -------------   --------------
<S>                                                              <C>             <C>
REVENUE
Equipment                                                        $   6,500,176   $    9,360,914
Services                                                             5,139,860        4,348,322
                                                                 -------------   --------------

Total Revenue:                                                      11,640,036       13,709,236
                                                                 -------------   --------------
COST OF REVENUE
Equipment                                                            5,212,504        8,305,615
Services                                                             3,668,521        3,344,727

Total Cost of Revenue                                                8,881,025       11,650,342
                                                                 -------------   --------------

Gross Profit                                                         2,759,011        2,058,894

Selling, General and Administrative Expenses                         2,636,971        3,217,549
                                                                 -------------   --------------

Operating Income (Loss)                                                122,040       (1,158,655)
                                                                 -------------   --------------

Interest Income                                                          6,857           13,345
Interest Expense                                                       (25,697)         (35,033)

Net Income (Loss)                                                $     103,200   $   (1,180,343)
                                                                 =============   ==============
Net Income (Loss) Per Common Share - Basic and Diluted           $        0.02   $        (0.24)
                                                                 =============   ==============
Weighted Average Common Shares Outstanding - Basic and Diluted       4,823,304        4,823,304
                                                                 =============   ==============
</TABLE>

See Notes to Consolidated Financial Statements.

                                                                               3

<PAGE>

                       TRANSNET CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

                                                 SIX MONTHS ENDED DECEMBER 31,
                                                -------------------------------
                                                     2009             2008
                                                     ----             ----

OPERATING ACTIVITIES:

Net Income (Loss)                               $   103,200      $ (1,180,343)
                                                -----------      ------------
Adjustments to Reconcile Net Income
    to Net Cash:
Depreciation and Amortization                        41,389           76,453
Provision for Doubtful Accounts                     (91,128)              --

Changes in Assets and Liabilities:
(Increase) Decrease in:
Restricted Cash                                      (6,258)         (13,238)
Accounts Receivable                                 661,076        2,142,132
Inventory                                           122,440          101,810
Other Current Assets                                (33,696)         (32,732)
Other Assets                                           (980)          (2,130)

Increase (Decrease) in:
Accounts Payable and Accrued Expenses            (1,953,851)         493,270
Unearned Revenue                                   (214,591)              --
Income Tax Payable                                       --           (1,457)
                                                -----------      ------------

Total Adjustments                               $(1,475,601)     $ 2,764,108
                                                -----------      ------------

NET CASH - OPERATING ACTIVITIES - FORWARD       $(1,372,401)     $ 1,583,765
                                                -----------      ------------

INVESTING ACTIVITIES:
Capital Expenditures                            $   (18,129)     $    (8,069)
                                                -----------      ------------

FINANCING ACTIVITIES -
Lines of Credit - Net                           $   (28,731)     $(1,440,746)
                                                -----------      ------------

NET (DECREASE) INCREASE IN CASH                 $(1,419,261)     $   134,950

CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIODS                            $ 1,654,366      $   314,618
                                                -----------      ------------
CASH AND CASH EQUIVALENTS AT
END OF PERIODS                                  $   235,103      $   449,568
                                                -----------      ------------

Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:

Interest                                        $    27,554      $    35,033
Income Taxes                                    $        --      $     1,457


See Notes to Consolidated Financial Statements.

                                                                               4

<PAGE>


                       TRANSNET CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

(1.) BASIS OF PRESENTATION

       The accompanying unaudited financial statements have been prepared in
       accordance with accounting principles generally accepted in the United
       States of America for interim financial information and with the
       instructions to Form 10-Q and Article 8 of Regulation S-X. They do not
       include all of the information and footnotes required by accounting
       principles generally accepted in the United States of America for
       complete financial statements. In the opinion of management, all
       adjustments (consisting only of normal recurring accruals) considered
       necessary in order to make the interim financials not misleading have
       been included. The operating results for the three months and six months
       ended December 31, 2009 are not necessarily indicative of the results
       that can be expected for the year ending June 30, 2010.

       The balance sheet as of June 30, 2009 has been derived from the audited
       financial statements at such date, but does not include all of the
       information and footnotes required by accounting principles generally
       accepted in the United States of America for complete financial
       statements.

       The complete list of significant accounting policies followed by TransNet
       Corporation (the "Corporation") are set forth in Note 2 to the
       Corporation's consolidated financial statements in the Form 10-K for the
       fiscal year ended June 30, 2009.

       For further information, please refer to the consolidated financial
       statements and footnotes thereto included in the Corporation's Annual
       Report on Form 10-K for the year ended June 30, 2009.

       Certain reclassifications have been made to prior period financial
       statements to conform to the current year presentation.

 (2.) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       (a) Consolidation: The consolidated financial statements include the
       accounts of the Corporation and its wholly owned subsidiary, Century
       American Corporation. Intercompany transactions and accounts have been
       eliminated in consolidation.

       (b) Inventory: Inventory consists of finished goods. The Corporation's
       inventory is valued at the lower of cost (determined on the average cost
       basis) or market.

       (c) Cash and Cash Equivalents: The Corporation considers highly liquid
       debt instruments, purchased with a maturity of three months or less, to
       be cash equivalents.

       (d) Revenue Recognition: The Corporation's revenues are derived from both
       the sale of equipment and services provided to customers. Revenues
       related to equipment sales are recognized when evidence of an arrangement
       exists, delivery has occurred, the sales price is both fixed and
       determinable, and collectability is reasonably assured.

       Revenues related to services provided are recognized ratably over the
       term of the underlying customer contract or when obligations have been
       satisfied. For service performed on a time and materials basis, revenue
       is recognized upon performance.
                                                                               5

<PAGE>

       The Corporation also enters into revenue arrangements in which customers
       may purchase a combination of equipment and services (multiple-element
       arrangements). When vendor-specific objective evidence ("VSOE") of fair
       value exists for all elements, revenue is allocated to each element based
       on the relative fair value of each of the elements. VSOE of fair value is
       established by the price charged when that element is sold separately.
       For services, VSOE of fair value is established by the rates charged when
       they are sold separately. For arrangements where VSOE of fair value
       exists only for the undelivered elements, we defer the full fair value of
       the undelivered elements and recognize the difference between the total
       arrangement fee and the amount deferred for the undelivered items as
       revenue, assuming all other criteria for revenue recognition have been
       met.

       (e) Earnings Per Share: Earnings per common share - basic and diluted are
       based on 4,823,304 weighted shares outstanding for the three and six
       months ended December 31, 2009 and 2008. The options to purchase an
       aggregate of 297,500 shares of our common stock at a price of $0.88 per
       share were not included in the computation of diluted earnings per share
       for the periods ended December 31, 2009 and 2008 because the options'
       exercise price was greater than the average market price of the common
       shares.

(3.) NEW ACCOUNTING UPDATES

       On June 29, 2009, the FASB issued an accounting pronouncement
       establishing the FASB Accounting Standards Codification (the "ASC") as
       the source of authoritative accounting principles recognized by the FASB
       to be applied by nongovernmental entities. This pronouncement was
       effective for financial statements issued for interim and annual periods
       ending after September 15, 2009, for most entities. On the effective
       date, all non-SEC accounting and reporting standards will be superseded.
       The Corporation adopted this new accounting pronouncement for the
       quarterly period ended September 30, 2009, as required, and adoption did
       not have a material impact on its financial statements taken as a whole.

       In April 2009, the FASB issued Staff Position ("FSP") SFAS 157-4,
       "Determining Fair Value When the Volume and Level of Activity for the
       Asset or Liability Have Significantly Decreased and Identifying
       Transactions That Are Not Orderly," which was subsequently incorporated
       into FASB ASC topic 820, "Fair Value Measurements and Disclosures." This
       ASC emphasizes that even if there has been a significant decrease in the
       volume and level of activity, the objective of a fair value measurement
       remains the same. Fair value is the price that would be received to sell
       an asset or paid to transfer a liability in an orderly transaction (that
       is, not a forced liquidation or distressed sale) between market
       participants. The ASC provides a number of factors to consider when
       evaluating whether there has been a significant decrease in the volume
       and level of activity for an asset or liability in relation to normal
       market activity. In addition, when transactions or quoted prices are not
       considered orderly, adjustments to those prices based on the weight of
       available information may be needed to determine the appropriate fair
       value. The ASC also requires increased disclosures. This ASC is effective
       for interim and annual reporting periods ending after June 15, 2009. The
       adoption of this ASC did not have a material impact on the Corporation's
       results of operations or financial position.

       In April 2009, the FASB issued FSP SFAS 115-2 and SFAS 124-2,
       "Recognition and Presentation of Other-than-temporary impairments," which
       was subsequently incorporated into ASC topic 320, "INVESTMENTS - DEBT AND
       EQUITY SECURITIES." The purpose of this ASC was to provide greater
       clarity to investors about the credit and noncredit component of an
       other-than-temporary impairment event and to communicate more effectively
       when an other-than-temporary impairment event has occurred. This ASC
       amends the other-than-temporary impairment guidance in GAAP for

                                                                               6

<PAGE>

       debt securities and improves the presentation and disclosure of
       other-than-temporary impairment on investment securities and changes the
       calculation of the other-than-temporary impairment recognized in earnings
       in the financial statements. This ASC does not amend existing recognition
       and measurement guidance related to other-than-temporary impairment of
       equity securities.

       For debt securities, ASC topic 320 requires an entity to assess whether
       (a) it has the intent to sell the debt security, or (b) it is more likely
       than not that it will be required to sell the debt security before its
       anticipated recovery. If either of these conditions is met, an
       other-than-temporary impairment on the security must be recognized.

       In instances in which a determination is made that a credit loss (defined
       as the difference between the present value of the cash flows expected to
       be collected and the amortized cost basis) exists but the entity does not
       intend to sell the debt security and it is not more likely than not that
       the entity will be required to sell the debt security before the
       anticipated recovery of its remaining amortized cost basis (i.e., the
       amortized cost basis less any current-period credit loss), ASC topic 320
       changes the presentation and amount of the other-than-temporary
       impairment recognized in the income statement.

       In these instances, the impairment is separated into (a) the amount of
       the total impairment related to the credit loss, and (b) the amount of
       the total impairment related to all other factors. The amount of the
       total other-than-temporary impairment related to the credit loss is
       recognized in earnings. The amount of the total impairment related to all
       other factors is recognized in other comprehensive loss and will be
       amortized over the remaining life of the debt security as an increase in
       the carrying value of the security (with no effect on earnings unless the
       security is subsequently sold or there is additional other-than-temporary
       impairment losses recognized). The total other-than-temporary impairment
       is presented in the income statement with an offset for the amount of the
       total other-than-temporary impairment that is recognized in other
       comprehensive loss. Previously, in all cases, if an impairment was
       determined to be other-than-temporary, an impairment loss was recognized
       in earnings in an amount equal to the entire difference between the
       security's amortized cost basis and its fair value at the balance sheet
       date of the reporting period for which the assessment was made. The new
       presentation provides additional information about the amounts that the
       entity does not expect to collect related to a debt security.

       ASC topic 320 is effective and is to be applied prospectively for
       financial statements issued for interim and annual reporting periods
       ending after June 15, 2009. When adopting ASC topic 320, an entity is
       required to record a cumulative-effect adjustment as of the beginning of
       the period of adoption to reclassify the noncredit component of a
       previously recognized other-than-temporary impairment from retained
       earnings to accumulated other comprehensive loss if the entity does not
       intend to sell the security and it is not more likely than not that the
       entity will be required to sell the security before the anticipated
       recovery of its amortized cost basis.

       In May 2009, the FASB issued SFAS 165 "Subsequent Events," which was
       subsequently incorporated into FASB ASC topic 855 "Subsequent Events."
       This ASC establishes general standards of accounting for and disclosures
       of events that occur after the balance sheet date but before financial
       statements are issued or are available to be issued. In particular, this
       ASC sets forth the period after the balance sheet date during which
       management of a reporting entity should evaluate events or transactions
       that may occur for potential recognition or disclosure in the financial
       statements, the circumstances under which an entity should recognize
       events or transactions occurring after the balance sheet date in its
       financial statements, and the disclosures that an entity should make
       about events or transactions that occurred after the balance sheet date.
       In accordance with this ASC, an entity should apply the requirements to
       interim or annual financial periods ending
                                                                               7

<PAGE>

       after June 15, 2009. Subsequent events were evaluated through February
       16, 2010 which is the date the financial statements were issued. The
       impact of adoption of this ASC did not have a material impact on the
       results of operations or financial position of the Corporation.

       In June 2009, the FASB issued SFAS 166 "Accounting for Transfers of
       Financial Assets -- an amendment of FASB Statement No. 140." SFAS 166
       amends SFAS 140 and removes the concept of a qualifying special-purpose
       entity and limits the circumstances in which a financial asset, or
       portion of a financial asset, should be derecognized when the transferor
       has not transferred the entire financial asset to an entity that is not
       consolidated with the transferor in the financial statements being
       presented and/or when the transferor has continuing involvement with the
       transferred financial asset. The new standard will become effective for
       the Corporation on January 1, 2010. This update is not expected to have a
       material impact on the results of operations or financial position of the
       Corporation.

       In June 2009, the FASB issued SFAS 167 "Amendments to FASB Interpretation
       No. 46(R)." SFAS 167 amends tests under Interpretation No. 46(R) for
       variable interest entities to determine whether a variable interest
       entity must be consolidated. SFAS 167 requires an entity to perform an
       analysis to determine whether an entity's variable interest or interests
       give it a controlling financial interest in a variable interest entity.
       SFAS 167 requires ongoing reassessments of whether an entity is the
       primary beneficiary of a variable interest entity and enhanced
       disclosures that provide more transparent information about an entity's
       involvement with a variable interest entity. The new standard will become
       effective for the Corporation on January 1, 2010. This update is not
       expected to have a material impact on the results of operations or
       financial position of the Corporation.

       The FASB issues ASUs to amend the authoritative literature in ASC. There
       have been 23 ASUs to date that amend the original text of ASC. Except for
       ASU 2009-12, "Investments in Certain Entities That Calculate Net Asset
       Value per Share (or Its Equivalent)" , many of the ASUs issued to date
       either (i) provide supplemental guidance, (ii) are technical corrections
       or (iii) are not applicable to the Corporation.

       In January 2010, the FASB issued Accounting Standards Update 2010-06,
       "Improving Disclosures about Fair Value Measurements." This update
       requires some new disclosures and clarifies some existing disclosure
       requirements about fair value measurements codified within ASC 820, "Fair
       Value Measurements and Disclosures." The majority of the provisions of
       this update, including those applicable to TransNet, are effective for
       interim and annual reporting periods beginning after December 15, 2009.
       Early application of the provisions of this update is permitted. The
       Corporation will adopt the applicable provisions of this update in the
       third quarter of fiscal 2010 and is currently evaluating the impact the
       adoption of these provisions will have on its consolidated financial
       statement disclosures.

       In September 2009, the FASB issued ASU 2009-12, "Investments in Certain
       Entities That Calculate Net Asset Value per Share (or Its Equivalent)",
       to provide guidance on measuring the fair value of investments in
       entities that calculate net asset value. The standard amends ASC Topic
       820, "Fair Value Measurements and Disclosures." The amendment permits, as
       a practical expedient, a reporting entity to measure the fair value of an
       investment, which is within the scope of the standard, on the basis of
       net asset value per share of the investment (or its equivalent). The
       amendment also requires disclosures by major category of investment about
       the attributes of investments, such as the nature of any restrictions on
       the investor's ability to redeem its investments at the measurement date,
       any unfunded commitments and the investment strategies of the investees.
       The guidance in the standard is effective for interim and annual periods
       ending after December 15,
                                                                               8

<PAGE>

       2009. The Corporation adopted the new standard beginning with these
       financial statements. The impact of adoption was not material.

       In October 2009, the FASB issued ASU No. 2009-13, "Revenue Recognition
       (Topic 605): Multiple-Deliverable Revenue Arrangements (a consensus of
       the FASB Emerging Issues Task Force)," which amends ASC 605-25, "Revenue
       Recognition: Multiple-Element Arrangements." ASU No. 2009-13 addresses
       how to determine whether an arrangement involving multiple deliverables
       contains more than one unit of accounting and how to allocate
       consideration to each unit of accounting in the arrangement. This ASU
       replaces all references to fair value as the measurement criteria with
       the term selling price and establishes a hierarchy for determining the
       selling price of a deliverable. ASU No. 2009-13 also eliminates the use
       of the residual value method for determining the allocation of
       arrangement consideration. Additionally, ASU No. 2009-13 requires
       expanded disclosures. This ASU will become effective for us for revenue
       arrangements entered into or materially modified on or after July 1,
       2010. Earlier application is permitted with required transition
       disclosures based on the period of adoption. We are currently evaluating
       the application date and the impact of this standard on our consolidated
       financial statements.

       In October 2009, the FASB issued ASU No. 2009-14, "Software (Topic 985):
       Certain Revenue Arrangements That Include Software Elements (a consensus
       of the FASB Emerging Issues Task Force)." ASU No. 2009-14 amends ASC
       985-605, "Software: Revenue Recognition," such that tangible products,
       containing both software and non-software components that function
       together to deliver the tangible product's essential functionality, are
       no longer within the scope of ASC 985-605. It also amends the
       determination of how arrangement consideration should be allocated to
       deliverables in a multiple-deliverable revenue arrangement. This ASU will
       become effective for us for revenue arrangements entered into or
       materially modified on or after July 1, 2010. Earlier application is
       permitted with required transition disclosures based on the period of
       adoption. We are currently evaluating the application date and the impact
       of this standard on our consolidated financial statements. Both ASU No.
       2009-13 and ASU No. 2009-14 must be adopted in the same period and must
       use the same transition disclosures.

       In December 2009, the FASB issued ASU No. 2009-16, "Transfers and
       Servicing (Topic 860): Accounting for Transfers of Financial Assets." ASU
       No. 2009-16 is a revision to ASC 860, "Transfers and Servicing," and
       amends the guidance on accounting for transfers of financial assets,
       including securitization transactions, where entities have continued
       exposure to risks related to transferred financial assets. ASU No.
       2009-16 also expands the disclosure requirements for such transactions.
       This ASU will become effective for us on April 1, 2010. We are currently
       evaluating the impact of this standard on our consolidated financial
       statements.

       In December 2009, the FASB issued ASU No. 2009-17, "Consolidations (Topic
       810): Improvements to Financial Reporting by Enterprises Involved with
       Variable Interest Entities." ASU No. 2009-17 amends the guidance for
       consolidation of VIEs primarily related to the determination of the
       primary beneficiary of the VIE. This ASU will become effective for us on
       April 1, 2010. We are currently evaluating the impact of this standard on
       our consolidated financial statements.

(4.) FAIR VALUE MEASUREMENTS

       We adopted ASC topic 820, "Fair Value Measurements and Disclosures" on
       July 1, 2008 for all financial assets and liabilities and nonfinancial
       assets and liabilities that are recognized or disclosed at fair value in
       the financial statements on a recurring basis (at least annually). Topic
       820 defines
                                                                               9

<PAGE>

       fair value, establishes a framework for measuring fair value, and expands
       disclosures about fair value measurements.

       Topic 820 defines fair value as the price that would be received upon
       sale of an asset or paid upon transfer of a liability in an orderly
       transaction between market participants at the measurement date and in
       the principal or most advantageous market for that asset or liability.
       The fair value should be calculated based on assumptions that market
       participants would use in pricing the asset or liability, not on
       assumptions specific to the entity. In addition, the fair value of
       liabilities should include consideration of non-performance risk
       including our own credit risk.

       In addition to defining fair value, topic 820 expands the disclosure
       requirements around fair value and establishes a fair value hierarchy for
       valuation inputs. The hierarchy prioritizes the inputs into three levels
       based on the extent to which inputs used in measuring fair value are
       observable in the market. Each fair value measurement is reported in one
       of the three levels which is determined by the lowest level input that is
       significant to the fair value measurement in its entirety. These levels
       are:

         o    Level 1 - inputs are based upon unadjusted quoted prices for
              identical instruments traded in active markets.

         o    Level 2 - inputs are based upon quoted prices for similar
              instruments in active markets, quoted prices for identical or
              similar instruments in markets that are not active, and
              model-based valuation techniques for which all significant
              assumptions are observable in the market or can be corroborated by
              observable market data for substantially the full term of the
              assets or liabilities.

         o    Level 3 - inputs are generally unobservable and typically reflect
              management's estimates of assumptions that market participants
              would use in pricing the asset or liability. The fair values are
              therefore determined using model-based techniques that include
              option pricing models, discounted cash flow models, and similar
              techniques.


The following table presents assets that are measured and recognized at fair
value on a recurring basis.

                               DECEMBER 31,
                               ------------
           DESCRIPTION             2009          LEVEL 1     LEVEL 2     LEVEL 3
           -----------             ----          -------     -------     -------

   Certificate of Deposit       $ 869,879         $   -     $ 869,879     $   -

(5.) DEBT

The Corporation previously financed inventory purchases through a credit line
with a finance company, with a maximum credit line of $2,500,000, which was
terminated by the Corporation in fiscal 2009. The Corporation currently utilizes
credit available from multiple vendors under terms which provide for interest
free periods ranging from 30 to 60 days. A significant portion of vendor credit
is secured by certain of the Corporation's assets. The vendors may in their sole
discretion from time to time determine the maximum amount of credit which they
elect to extend. The Corporation entered into a line of credit with a third
party, which is secured by the Corporation's certificate of deposit listed as
restricted cash.

                                                                              10

<PAGE>

(6.) INCOME TAXES

       The following reconciles the tax provision with the U.S. statutory tax
       rates:

<TABLE>
<CAPTION>
                                                        THREE MONTHS ENDED DECEMBER 31,
                                                             2009           2008

<S>                                                         <C>            <C>
Income taxes at U.S. statutory rate                         (35.0)%        (35.0)%
State taxes, net of federal tax benefit                      (6.0)          (6.0)
Change in valuation allowance on deferred tax assets         41.0           41.0
TOTAL EXPENSE (BENEFIT)                                         0%             0%
                                                           ======         ======
</TABLE>


<TABLE>
<CAPTION>
                                                         SIX MONTHS ENDED DECEMBER 31,
                                                           2009           2008

<S>                                                       <C>            <C>
Income taxes at U.S. statutory rate                       (35.0)%        (35.0)%
State taxes, net of federal tax benefit                    (6.0)          (6.0)
Change in valuation allowance on deferred tax assets       41.0           41.0
TOTAL EXPENSE (BENEFIT)                                       0%             0%
                                                         ======          =====
</TABLE>


       At June 30, 2009, the Corporation had federal net operating tax loss
       carryforwards of approximately $9.6 million, which will begin to expire
       on June 30, 2024. The Corporation has provided a full valuation allowance
       against its deferred tax asset due to the uncertainty about its
       realization.

(7.) SUBSEQUENT EVENTS

       In May 2009, the FASB issued guidance now codified as FASB ASC Topic 855,
       "Subsequent Events," which establishes general standards of accounting
       for, and disclosures of, events that occur after the balance sheet date
       but before financial statements are issued or are available to be issued.
       FASB ASC Topic 855 is effective for interim or fiscal periods ending
       after June 15, 2009. Accordingly, the Corporation adopted the provisions
       of FASB ASC Topic 855 on June 30, 2009. We evaluated subsequent events
       for the period from December 31, 2009, the date of these financial
       statements, through February 16, 2010, which represents the date these
       financial statements are being filed with the SEC. Pursuant to the
       requirements of FASB ASC Topic 855, there were no events or transactions
       occurring during this subsequent even reporting period that require
       recognition or disclosure in the financial statements. With respect to
       this disclosure, we have not evaluated subsequent events occurring after
       February 16, 2010.

                                                                              11

<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

SPECIAL NOTE ABOUT FORWARD LOOKING STATEMENTS
Certain statements in Management's Discussion and Analysis ("MD&A"), other than
purely historical information, including estimates, projections, statements
relating to our business plans, objectives, and expected operating results, and
the assumptions upon which those statements are based, are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These forward-looking statements generally are
identified by the words "believe," "project," "expect," "anticipate,"
"estimate," "intend," "strategy," "plan," "may," "should," "will," "would,"
"will be," "will continue," "will likely result," and similar expressions
identify forward-looking statements, but are not the exclusive means of
identifying such statements and their absence does not mean that a statement is
not forward-looking. Forward-looking statements are based on current
expectations and assumptions that are subject to risks and uncertainties, which
may cause actual results to differ materially from the forward-looking
statements. Except as required by law, we undertake no obligation to update or
revise publicly any forward-looking statements, whether as a result of new
information, future events, or otherwise.

RESULTS OF OPERATIONS

Earnings for the quarter ended December 31, 2009 increased as compared to the
same quarter in the prior year. For the quarter ended December 31, 2009, the
Corporation reported net income of $1,136 as compared with a net loss of
$1,230,774 for the quarter ended December 31, 2008. The increase in earnings for
the December 2009 quarter and six-month period was due to an increase in gross
profit margins as a result of the Corporation's focus on sales and service of
more sophisticated and complex IT and physical security systems combined with a
significant increase in service revenues. For the quarter ended December 31,
2009, primarily due to an increase in technical service revenue (discussed
below), overall revenues increased to $5,775,086 as compared to $5,143,972 for
the quarter ended December 31, 2008. Revenues for the six-months ended December
31, 2009 were $11,640,036 as compared with $13,709,236 for the same period ended
December 31, 2008 due to a decrease in equipment sales. TransNet reported net
income of $103,200 for the six-month period ended December 31, 2009, compared
with a net loss of $1,180,343 for the same period in the prior fiscal year.

Earnings for the quarter and six-month period ended December 31, 2009 were
attributable to a number of factors including Management's emphasis on sales of
higher profit margin equipment and services, aggressive measures in expense
reduction, and steps to migrate our product line and service offerings to
address economic challenges and to target new opportunities. Service revenues
increased as demand resumed for technical services offered by the Corporation.
In response to increased demand, we increased the number of our existing
technicians in the field as well as their billable hours. Service related
revenues, a material segment of revenues, are significant because these
operations yield a higher profit margin than equipment sales. Despite a
reduction in hardware sales and total revenues, overall profit margins increased
to 24% for the second quarter of fiscal 2010 from 4% in the same quarter in
fiscal 2009, and increased to 24% from 15% for the comparative fiscal 2010 and
2009 six-month periods ended December 31, respectively. The increase in profit
margins resulted from Management's concentration on sales of and services
related to higher margin equipment such as Voice over Internet Protocol ("VoIP")
systems and physical security systems. Implementation of the new "agency model"
recently instituted by the State of New Jersey contributed to the decrease in
equipment sales revenue for the December 2009 quarter and six-month period.
Under this model, certain orders are processed directly by our hardware
partners, who receive purchase orders directly, and ship and invoice our clients
directly. TransNet is paid an agency fee for generating the transaction.
Although these transactions lower the amount of revenue realized, they provide
payment of the fee within a shorter period than the typical

                                                                              12
<PAGE>

payment period for sales invoiced by the Corporation, and free our funding for
other transactions. Sales under this agency model were not a material source of
revenues. Cost of equipment sold may be impacted by the Corporation's
eligibility for temporary incentives, such as rebates, offered by equipment
manufacturers from time to time. The Corporation's eligibility for the rebates
is usually subject to minimum sales levels and satisfaction of other criteria
established by the manufacturers in their sole discretion. Rebates received
during the December 2009 quarter and six-month period did not have a material
impact upon cost of equipment sold.

As the economy continues to face challenges recovering from the recession,
credit remains tight, and clients often face reduced budgets. We confront
continued restrictions on capital expenditures for many clients, including
commercial and state, and local governmental agencies, and educational customers
(K-12 through higher education) (collectively "Public Sector" clients). The
Corporation's clients have restricted their IT budgetary spending and
scrutinized their IT spending and the related returns on investments before
incurring new expenses, often delaying purchases. As stated above, Management
responded by refocusing our attention on sales of higher profit margin IT
equipment, optimizing the utilization rates of its service technicians, and
reducing selling and administrative expenses. Management believes that as a
single-source provider, the Corporation will be in a better position to satisfy
client demands for cost-effectiveness and a suitable return on investment. The
VoIP networks marketed by TransNet are designed with the capacity for
"optimization" through the subsequent addition of layers of solutions, for
example, physical security solutions. We are confident that our strategy of
being an advanced solutions provider will result in future revenues from
clients' optimization of already installed networks. In conjunction with these
solutions, we note the technologies of the integration of voice, video, and data
that provide clients with new levels of operating efficiencies.

Management notes that, following implementation of new State purchasing
mechanisms in New Jersey, purchases by Public Sector clients increased during
the first half of fiscal 2010, but continue to be subject to budgetary
restrictions. Due to the impending change in administration following the New
Jersey gubernatorial election in November, however, a freeze on purchases was
instituted until the new administration was installed. As a result, sales to
Public Sector clients during the second quarter of fiscal 2010 were lower than
anticipated. Uncertainty of our Public Sector clients regarding the proposed
federal stimulus package added to the overall slowdown while their projects were
on hold pending funding parameters. Once fully implemented, the stimulus package
is expected to provide an influx of capital for these clients and to clients in
healthcare to use for programs such as security and first-responder technology
and other products sold and supported by the Corporation. Management is
cautiously optimistic about the results for the remainder of fiscal 2010. Due to
uncertainties regarding the economy, however, no assurances can be given.

Our service revenues are generated primarily by services including system
planning, design, configuration, installation and implementation, testing, and
optimization, often related to the sale and implementation of VoIP networks. In
the past year, Management refocused its attention on utilization rates of its
service technicians. As previously reported, project work has become the major
source of service revenue generation. Revenues are also generated by a variety
of support contracts with a number of corporate and educational customers. Under
these agreements, which provide service and support for customers' networks,
personal computers, and peripherals, TransNet's Support Center provides
troubleshooting, diagnosis, and remedial services performed remotely by skilled
system engineers, who will be dispatched to perform on-site repairs, if
necessary. The agreements provide a range of guaranteed response times, based
upon the client's specific response requirements or the nature of the outage.
The availability of these services is determined by the client, from 24/7 to
next business day. These contracts are short-term, and contain provisions that
permit early termination. Although the contracts generally contain renewal
terms, there is no assurance that such renewals will occur. Our system engineers
and service technicians also provide service and support on an on-call basis. In
addition to these services,

                                                                              13
<PAGE>

TransNet provides temporary and permanent staffing and consulting services. Our
staffing services are not a material source of revenues, but these services
carry higher profit margins than equipment sales. This area of our operations
was significantly impacted by the recession during fiscal 2009 as businesses
curtailed staffing and reduced their personnel levels. In the first half of
fiscal 2010, as businesses were faced with special projects to perform required
upgrades repairs, and replacement of their networks despite the recession,
TransNet's staffing operations experienced a strong demand for temporary IT
support specialists. Although no assurances can be given, we believe that as the
economy recovers and businesses begin to increase the number of employees, the
demand for our staffing services will be positively affected.

Management has directed attention to new service offerings that take into
account clients' cost constraints. The Corporation modified its service
offerings in response to industry fluctuations, and employs experienced and
specially certified systems engineers and project managers to respond to VoIP
projects. We believe our focus upon higher margin services related to VoIP/IP
Telephony and physical security will lead to growth and opportunities for the
Corporation. Our goal is to increase our profit margins further as we focus on
higher-end products and services flowing from security, communications, and data
center management. The complex products and services not only are
higher-margined items, but are also of pressing importance to our clients.

During the fiscal periods discussed, the Corporation performed under contract
awards for VoIP products and services, pending construction of the sites into
which the systems will be installed and implemented. Management notes that some
of these projects were affected by construction delays beyond the Corporation's
control, and these delays resulted in some order backlogs. Construction related
delays are typical in a number of projects because the Corporation's portion of
the project cannot be performed until a specified amount of the construction has
been completed and/or certain determinations made as to specifics of the project
due to customer-originated change orders. None of these delays had any
significant impact upon the operations of the Corporation.

During the quarter ended December 31, 2009, selling, general and administrative
expenses decreased by 7% as compared to the same quarter last year due to
Management's concerted efforts to reduce expenses. These efforts included salary
reductions, salary freezes, staff reductions, and other cost reduction programs.
As a percentage of revenues, these expenses decreased to 23% from 28% of
revenues for the comparative quarter in the prior year. For the six-month period
ended December 31, 2009, selling, general and administrative expenses were
reduced by 18% as compared to the same period in 2008. Actual expenses decreased
for both the three and six-month periods ended December 31, 2009 as the
Corporation undertook a number of staff reductions, and implemented salary
freezes and salary reductions. As a percentage of revenues for the six-month
period, the expenses were relatively stable at 23% of revenues as a function of
the decrease in total revenue for the fiscal 2010 period. Management continues
its efforts to control expenses, despite increases in costs, such as health
benefits, beyond its control.

Interest income decreased in the quarter and six-month period ended December 31,
2009 as compared to the comparative periods in fiscal 2009 as a result of lower
amounts invested. Interest expense increased in the quarter ended December 31,
2009 compared to the December 2008 quarter as a result of increased borrowing to
fund equipment sales. For the six-month period of fiscal 2010 as compared to
fiscal 2009, interest expense decreased due to the Corporation's use of vendor
credit options, which provide more favorable terms.

In addition to the challenging economic environment, the computer industry has
experienced a continuing trend of decreasing prices of computers and related
equipment. Management believes that this trend will continue. Industry-wide, the
result of price erosion has been lower profit margins on sales, which require

                                                                              14
<PAGE>

price decreases has been intensified competition within the industry, including
the consolidation of businesses through merger or acquisition, as well as the
increased initiation of sales by certain manufacturers directly to the end-user
and the entrance of manufacturers into technical services business. Management
believes that the adoption of policies by many larger corporate customers, which
limit the number of vendors permitted to provide goods and services for
specified periods of time, has further increased price competition.

To meet these competitive challenges and to maximize the Corporation's profit
margin, Management reviewed and has modified its marketing strategy and has
enforced expense controls. Management also utilizes approaches such as
manufacturers' direct shipment and billing of the customers in exchange for
payment to the Corporation of an "agency fee" as a means to reduce equipment
related costs while increasing profits. These direct ship sales are an
alternative to sales through traditional channels. Management's current
marketing strategy is designed to shift its focus to provision of technical
services and to sales of higher profit margin products related to service and
support operations. Our efforts target commercial, educational, and governmental
customers who provide marketplaces for a wide range of products and services at
one time, a cost-effective approach to sales. These customers often do not have
their own technical staffs and outsource their computer service requirements to
companies such as TransNet. Management believes it maximizes profits through
concentration on sales of highly sophisticated higher profit VoIP and related
systems and solutions; promotion of the Corporation's service and support
operations; and strict adherence to cost cutting controls. In light of the
above, Management emphasizes and continues the aggressive pursuit of an
increased volume of sales of VoIP systems, and related technical service and
support programs, and has introduced new technical support programs offering a
wide variety of alternatives of remote and on-site network support and
monitoring. Management believes that product sales will continue to generate a
significant percentage of the revenues. In addition, the Corporation's buying
arrangement with Ingram Micro, Inc. enhances the Corporation's competitive edge
through product discounts unavailable through other sources.

The Corporation's performance is also impacted by other factors, many of which
are not within its control. These factors include: industry and general economic
conditions; the short-term nature of client commitments; patterns of capital
spending by clients; the timing and size of new projects; pricing changes in
response to competitive factors; the availability and related costs of qualified
technical personnel; timing and customer acceptance of new product and service
offerings; trends in IT outsourcing; and product constraints.

LIQUIDITY AND CAPITAL RESOURCES

There are no material commitments of the Corporation's capital resources, other
than leases, a third party line of credit, and employment contracts.

Cash and cash equivalents decreased in the interim period ended December 31,
2009, as cash was used to fund operations. Cash levels continue to be impacted
by the slow payment cycles of Public Sector clients and extended payment cycles
from some commercial clients as a result of the economic downturn. The
Corporation has entered into vendor credit arrangements to assist in purchasing
inventory and provide more flexibility with respect to cash. A significant
portion of vendor credit is secured by certain of the Corporation's assets.

The amount of cash received from or used by operating activities will vary based
on a number of business factors which may vary at different times, including
terms of available financing from vendors, and slowdowns or upturns in our
business or that of our customers. A decline in service revenues and/or a change
in the proportion of service revenues to total revenues may affect operating
cash flow as the bulk

                                                                              15

<PAGE>

of the Corporation's service revenues are derived from billing of our technical
staff's services. The cash outlay for the labor/payroll underlying these
services is incurred on a semi-monthly basis. Billing is determined by
timeframes set by our clients.

Accounts receivable decreased for the first half of fiscal 2010 due to reduced
revenues. The Corporation continues to be impacted by the extended and slower
payment cycles of commercial customers and governmental agencies. Accordingly,
Management vigorously continues its efforts to expedite payments from the
governmental bodies and is working to implement more favorable payment schedules
where possible. Management notes that payment terms with governmental clients
are usually dictated by the client.

Inventories decreased in the first half of fiscal 2010 quarter as a result of
shipments to fill existing open orders. The decrease in accounts payable during
the quarter ended December 31, 2009 is attributable to the reduction in
equipment sales. Amounts outstanding under the line of credit decreased because
purchases were made using vendor credit.

We require access to working capital from a third party line of credit and
vendor credit to fund our day-to-day operations, particularly at the end of our
fiscal quarters when demand for our products and services increase. We have made
a concerted effort to improve our working capital position and implemented
measures to reduce headcount, streamline operations, and manage costs in
response to the impact of the recession. In conjunction with the tightening of
credit in the US economy, which has negatively impacted our access to credit,
Management has reviewed the Corporation's line of credit and available vendor
credit and has taken steps to obtain the most favorable credit arrangements
available. The Corporation previously financed inventory purchases through a
credit line with a finance company, with a maximum credit line of $2,500,000,
which was terminated by the Corporation in fiscal 2009 because the modified
terms were unfavorable. Management currently utilizes various vendor credit
options, all of which provide the Corporation with more favorable payment terms
than those available under the prior credit line. Management believes that its
cash balance and access to credit will be sufficient to fund its operations for
the next twelve months. The unavailability of such credit going forward may have
an adverse impact upon the operations of the Corporation.

IMPACT OF INFLATION

The effects of inflation on our operations were not significant during the
periods presented.

CRITICAL ACCOUNTING POLICIES

The Corporation's financial statements are prepared in accordance with
accounting principles that are generally accepted in the United States. The
methods, estimates, and judgments used in applying these most critical
accounting policies have a significant impact on the results reported in the
financial statements. The Securities and Exchange Commission has defined
critical accounting policies as policies that involve critical accounting
estimates that require (a) management to make assumptions that are highly
uncertain at the time the estimate is made and (b) different estimates that
could have been reasonably used for the current period, or changes in the
estimates that are reasonably likely to occur from period to period, which would
have a material impact on the presentation of our financial condition, changes
in financial condition or in result of operations. Based on this definition, the
most critical policies include: revenue recognition, allowance for doubtful
accounts, and valuation of deferred tax assets.

                                                                              16
<PAGE>

INVESTMENT CONSIDERATIONS AND UNCERTAINTIES

THE MATTERS DISCUSSED IN MANAGEMENT'S DISCUSSION AND ANALYSIS AND THROUGHOUT
THIS REPORT THAT ARE FORWARD-LOOKING STATEMENTS ARE BASED ON CURRENT MANAGEMENT
EXPECTATIONS THAT INVOLVE RISK AND UNCERTAINTIES. POTENTIAL RISKS AND
UNCERTAINTIES INCLUDE, WITHOUT LIMITATION: THE IMPACT OF ECONOMIC CONDITIONS
GENERALLY AND IN THE INDUSTRY FOR IT PRODUCTS AND SERVICES; DEPENDENCE ON KEY
VENDORS AND CUSTOMERS; CONTINUED COMPETITIVE AND PRICING PRESSURES IN THE
INDUSTRY; PRODUCT SUPPLY SHORTAGES; OPEN-SOURCING OF PRODUCTS OF VENDORS,
INCLUDING DIRECT SALES BY MANUFACTURERS; RAPID PRODUCT IMPROVEMENT AND
TECHNOLOGICAL CHANGE, SHORT PRODUCT LIFE CYCLES AND RESULTING OBSOLESCENCE
RISKS; TECHNOLOGICAL DEVELOPMENTS; CAPITAL AND FINANCING AVAILABILITY; AND OTHER
RISKS SET FORTH HEREIN.

ITEM 4.  CONTROL AND PROCEDURES

The Chief Executive Officer and Chief Financial Officer of the Corporation have
concluded, based on their evaluation as of December 31, 2009, that the
Corporation's disclosure controls and procedures are not effective to ensure
that information required to be disclosed by the Corporation in the reports
filed or submitted by it under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), is recorded, processed, summarized and reported within the
time periods specified in the SEC's rules and forms, and include controls and
procedures designed to ensure that information required to be disclosed by the
Corporation in such reports is accumulated and communicated to the Corporation's
management, including the Chief Executive Officer and Chief Financial Officer,
as appropriate to allow timely decisions regarding required disclosure.

In light of this conclusion, the Corporation has initiated documentation of its
policies and procedures, and will institute compensating procedures and
processes as necessary to ensure the reliability of its financial reporting.
Management intends to remediate weaknesses in the control environment through
new resources and processes in its accounting department. Management believes
that its actions will continue to improve the Corporation's internal control
over financial reporting, as well as its disclosure controls and procedures.

There were no significant changes in the Corporation's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of such evaluation. The Corporation has commenced a review by its internal
staff, including its accounting staff, of new processes to provide an evaluation
of the level of controls and related procedures currently in place for each
process.


                                                                              17

<PAGE>

                                     PART II
                                OTHER INFORMATION

ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K

     A.   Exhibits -

          31.1 Certification required by Section 302

          31.2 Certification required by Section 302

          32 Certification required by Section 906

     B.   Reports on Form 8-K -

            On October 28, 2009, TransNet Corporation filed a Form 8-K under
            Item 2.02 and 7.01.

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                      TRANSNET CORPORATION
                                      (Registrant)

                                      /s/ Steven J. Wilk
                                      ---------------------------------
                                      Steven J. Wilk, President and
                                      Chief Executive Officer

                                      /s/ John J. Wilk
                                      ---------------------------------
                                      John J. Wilk,
                                      Principal Financial and Accounting Officer
                                      And Chairman of the Board of Directors

DATE: February 16, 2010

                                                                              18